Housing Market H1 2025: Volume Down 5%, Value Up 9% – Premiumisation Takes Centre Stage
Overview
India’s top eight housing markets—Bengaluru, Delhi‑NCR, MMR, Pune, Kolkata, Chennai, Hyderabad, and Ahmedabad—show a clear shift in market dynamics during the first half of 2025. While sales volume dipped by 5% compared to H1 2024, the value of these transactions climbed an impressive 9%, signaling a growing appetite for high‑end properties.
Key Numbers at a Glance
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Units sold: ~2,53,119 in Jan–Jun 2025 vs ~2,67,219 a year ago ➝ −5% volume decline
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Total sales value: ₹3,59,373 crore vs ₹3,30,750 crore ➝ +9% growth in value
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Average ticket size: jumped from ₹1.24 cr to ₹1.42 cr, a 14% increase.
What’s Driving the Premium Shift?
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Quality over quantity: CREDAI’s National President, Shekhar Patel, highlights a decisive shift in buyer sentiment—demand is moving toward larger, better-located, premium homes as aspirations and disposable incomes rise.
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In Delhi‑NCR, housing value rose 21%, despite lower units sold—affirming that location and quality now outweigh sheer volume in buyer priorities.
City-Level Trends (Snapshot Highlights)
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Delhi‑NCR: Strong dominance in luxury housing; Gurugram & Noida lead the luxury sales surge—driven by infrastructure development and lifestyle demand.
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Bengaluru: Notable growth in capital appreciation and rental yields, rewarding long-term investors. The sales average ticket rose to ₹1.42 cr.
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Hyderabad & Other Cities: While overall volume dips, price momentum in certain premium clusters cushions value performance.
Interpreting the Trends
1. Affordability vs Aspirations
Mid‑segment volumes may be suppressed by rising prices, but demand among affluent buyers remains steady, focused on luxury and location.
2. Developer Strategy
Builders seem to be aligning offerings toward premium or high-ticket homes, which shows up clearly in rising average ticket sizes and total value.
3. Macro Context
This shift echoes broader economic themes: increasing disposable wealth, urbanisation, and stronger real estate supply in prime segments.
4. Outlook for H2
Festive season demand, new premium launches, and attractive developer incentives may uplift activity. As buyers adjust to higher price bands, volume and value may converge—but likely at a more premium tier.
What to Watch Going Forward
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New launches by city: Will developers also pivot toward premium products in upcoming projects?
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City‑wise traction: Will markets like Hyderabad and Pune recover in volume or remain volume‑weak but value‑strong?
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Policy signals & financing trends: Changes in interest rates or approval processes may impact affordability, especially for mid‑range buyers.
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Tier‑II markets: Already showing growth in volume/value, they may offer alternate growth corridors as H1 metro markets see softening.
Final Take
The H1 2025 CREDAI‑CRE Matrix report paints a housing market in transition: fewer units changing hands, but those that do are premium homes commanding higher prices. Buyers are prioritising quality, location, and lifestyle, while developers increasingly respond with upscale offerings. As we move into the second half of the year, watch for how mid‑segment pricing, festive season demand, and evolving policy shape this evolving real estate story.
Reviewed by Aparna Decors
on
August 03, 2025
Rating:
